February 28, 2024

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Elon Musk sold $4 billion worth of Tesla stock as he moved to buy Twitter

Elon Musk sold $4 billion worth of Tesla stock as he moved to buy Twitter

Elon Musk, SpaceX founder and CEO of Tesla, waves as he arrives for a discussion at the Satellite 2020 conference in Washington, DC, Monday, March 9, 2020.

Andrew Harrier | Bloomberg | Getty Images

Elon Musk has sold nearly $4 billion Tesla Share in the days after his attempt to take Twitter Private, according to filings with the Securities and Exchange Commission.

In a series of deals executed on Tuesday and Wednesday, the Tesla and SpaceX CEO offloaded about 4.4 million shares of his electric car company.

The filings showed that the bulk of the CEO’s sales took place on Tuesday. Tesla shares fell 12 percent that day, but rose less than 1 percentage point on Wednesday.

When the filings became public, Musk wrote on Twitter, “No more TSLA sales planned anymore.” He made the comments in response to an account that heavily promoted Tesla’s stock, products, and Musk on the social network.

CNBC reached out to Tesla and Musk to ask exactly how he plans to use the proceeds, and whether he has sold more Tesla shares after April 27, the latest filing date issued Thursday. They did not immediately respond to a request for comment.

Musk is trying to buy Twitter and take over the private social media company for $54.20 per share, about $44 billion in total. In order to do so, Musk secured $25.5 billion in fully committed debt, including $12.5 billion in loans for his Tesla share.

Twitter before it was shown earlier this week, but the deal still requires shareholder and regulator approval.

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Musk will have to pay Twitter a $1 billion termination fee if it fails to secure enough funding to complete its deal to buy the social media business, according to a regulatory report released Tuesday.

On the other hand, Twitter will owe Musk a $1 billion breakup fee if it accepts a competing offer, or if shareholders reject the deal, According to the same deposit.

CNBC’s Lauren Viner contributed to this report.